NEWS  News  January 18, 2024  Reading time: 2 Minute(s)

Max (RS editor)

Huawei has recently established Shenzhen Yinwang Intelligent Technology Co Ltd, a dedicated smart car unit. This development marks a significant step forward in Huawei's ambitious plan to make a substantial impact on the automotive industry.

The newly incorporated firm, wholly owned by Huawei, is headquartered in Shenzhen, the tech giant's base. According to reputable Chinese corporate data providers, Tianyancha and Qichacha, Shenzhen Yinwang Intelligent Technology Co Ltd will primarily focus on the "manufacturing and sales of intelligent car systems and equipment". The company has an initial registered capital of 1 billion yuan (approximately $140.5 million), underlining Huawei's commitment to this venture.

Huawei's foray into the automotive sector is part of its broader strategy to diversify its business, especially in the face of challenges posed by US export restrictions. The company, renowned for its prowess in technology and telecommunications, is determined to make a comeback, with the automotive industry being a key focus.

In 2021, Huawei entered the electric vehicle (EV) race by launching its first battery-powered vehicle. Subsequently, the company introduced two additional vehicles, including the Luxeed S7, its first electric sedan, designed to compete with Tesla. The Aito M9, an electric SUV targeting high-end buyers, was unveiled in December, further intensifying competition in China's already crowded auto market.

Huawei's automotive ambitions received a significant boost in November when a subsidiary of Changan, a Chinese state-owned automaker, announced a partnership with Huawei to establish a new company dedicated to providing smart car systems. Changan plans to take a stake of up to 40% in the venture, emphasizing its commitment to becoming a low-carbon, tech-driven transportation company.

The establishment of Shenzhen Yinwang Intelligent Technology Co Ltd aligns with the broader trend of tech companies collaborating with automakers to develop smart cars. Huawei, in particular, offers HarmonyOS for Automotive, a software system designed to synchronize with its mobile operating system, creating a seamless experience across devices.

The emergence of AI-powered systems in cars is gaining momentum in China, with companies like BYD introducing Xuanji, an AI-powered system aimed at enhancing driving safety and comfort. As China advances rapidly in AI technology, the government has unveiled draft guidelines to standardize the AI industry, aiming to establish nationwide and industry-wide standards for AI by 2026.

China's proactive approach to regulating AI underscores the global race for supremacy in this transformative technology. At the World Economic Forum in Davos, a US lawmaker highlighted the intense competition in AI development, stating that the United States measures its lead over competitors in mere "months".

 IMAGES CREDITS: HUAWEI